EcoCeres inks agreement with Hong Kong government to develop a SAF facility in China

SAF producer EcoCeres has signed an Investment Letter of Intent with the Hong Kong SAR government and the Dongguan municipal government to establish a new sustainable aviation fuel production facility in Dongguan, mainland China. The partners say the facility will serve as a foundation for the first fully integrated SAF supply chain in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and a major step in making the GBA a leading player in the global SAF sector. The facility aims to have an annual capacity of around 450,000 tonnes of SAF and hydrotreated vegetable oil, with waste-based feedstock collection across the GBA; refining and production in Dongguan; and blending, refuelling and trading in Hong Kong to create an integrated end-to-end model.

In its Policy Address last year, the Hong Kong SAR government said that in order “to accelerate the adoption of green technologies and foster a globally influential industrial chain for advanced productive forces”, it would collaborate with mainland authorities to support a local enterprise – namely EcoCeres – to expand its presence across the Greater Bay Area.

“Developing a SAF value chain aligns with the National 15th Five-Year Plan and is a concrete action to implement the national green development strategy,” commented John Lee, the Chief Executive of the Hong Kong Special Administrative Region. “The collaboration between Hong Kong and Dongguan is the realisation of Executive-led governance of Hong Kong and the joint working of effective government and an efficient market.”

The initiative will align with a target requiring departing flights at Hong Kong International Airport to use a specified proportion of SAF by 2030. It is also aimed at driving the development of the regional circular economy.

“Dongguan and Hong Kong share close geographical proximity, strong people-to-people ties and deep commercial connections. Our cooperation has a long history and has yielded fruitful results, as exemplified by the Dongguan-Hong Kong International Airport Hub, a vivid testament to our mutually beneficial partnership,” said Wei Hao, Secretary of the CPC Dongguan Municipal Committee.  

“The decision to develop the EcoCeres SAF project in Dongguan reflects strong confidence in the city’s solid industrial foundation, its favourable business environment and strategic location, as well as clear foresight in seizing global green and low carbon transition opportunities, and further tapping into the Greater Bay Area market.

“We are confident the project will build on successful experiences such as the Airport Hub, serve as a flagship for green technology innovation, help establish a SAF value chain and provide strong support for waste reduction and recycling.”

Hong Kong-headquartered EcoCeres was incubated and founded by public utility Towngas and uses proprietary technology to refine and convert waste-based feedstock, including used cooking oil, into SAF. The company claims it is currently the only SAF producer with self-developed integrated technology covering the entire HEFA production process and already achieving commercial-scale production.

It operates two sustainable fuel production plants – one in Zhangjiagang, Jiangsu Province, China, with an annual capacity of 350,000 tonnes, and the other in Johor, Malaysia, with an annual capacity of 420,000 tonnes. In addition to SAF, both plants also co-produce HVO, which is mainly used in road transport.

“We are delighted that EcoCeres, a homegrown Hong Kong green unicorn, has grown to become the world’s second-largest SAF producer,” said Dr Peter Lee, Chairman of The Hong Kong and China Gas Company and Principal of energy and climate tech investor Full Vision Capital. “By leveraging Hong Kong’s unique position as an international aviation hub ‘backed by China and connected to the world’, together with Dongguan’s solid industrial base and well-established industrial ecosystem, we are confident in building a world-class SAF supply chain in the Greater Bay Area. This will not only meet rising global demand for SAF, but also inject new momentum into regional and national economic development.”

Photo (Cathay Pacific): Hong Kong International Airport

Christopher Surgenor
Editor